Jakarta (VNA) - Indonesian President Prabowo Subianto affirmed that national defence will be one of the eight primary areas in the 2026 Draft State Budget (RAPBN), alongside food and energy security, quality education and health care, rural development, and investment promotion.
In his recent address on the 2026 State Budget Bill and its Financial Notes in the Nusantara Building of the Parliamentary Complex in Jakarta, Prabowo stated that the budget will modernise Indonesia’s weaponry and defence equipment, strengthen the Reserve Component (Komcad), empower national defence industries, and improve the welfare of soldiers.
Indonesia must build a strong defence capability to safeguard sovereignty and territorial integrity in the world full of uncertainty, where threats could come suddenly, he said, adding the country possesses rare earth reserves, a critical resource for the defence industry, which will serve as a strategic advantage. Both state-owned and private enterprises will be encouraged to participate in the defence sector.
Part of the defence budget will also be allocated to maintain security, public order as well as law enforcement against crime, drug trafficking, corruption, and money laundering./.
Indonesia optimistic about economic growth outlook for 2026
Speaking at the opening session of the House of Representatives in Jakarta on August 15, Prabowo said this optimism is based on sound financial management, coupled with economic restructuring and productivity improvements. He also set a target for interest rates to remain at around 6.9%.
